The Cook County Authority is considering the purchase of a small plane to transport government officials. It

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The Cook County Authority is considering the purchase of a small plane to transport government officials. It is hoped that the plane will save money on travel costs for government employees. Assume the county requires a 10 percent rate of return. If the plane’s cost is $388,776 and it can be sold in five years for $40,000, what minimum annual savings in transportation costs is needed in order to make the plane a good investment?

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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078025778

17th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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